Tax Evasion of Rs 700 Crore: IT-Department on Dainik Bhaskar Raids

The Income Tax Department also said that they have violated rules laid down by SEBI for listed companies.
Tax Evasion of Rs 700 Crore: IT-Department on Dainik Bhaskar Raids
Tax Evasion of Rs 700 Crore: IT-Department on Dainik Bhaskar Raids
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The Income TaxDepartment said on Saturday that during the raids on Dainik Bhaskar Group,evidence of tax evasion on income of Rs 700 crore, violation of stock marketrules and misappropriation of profit from listed companies has beenfound. 

The departmentstated, “During the raids, it has been found that they were running manycompanies in the name of their employees. Which were being used forbooking of bogus expenses and for diverting money from one account to another. Severalemployees who were made shareholders and directors confessed during the raidsthat they had no knowledge of the companies being run in their names; they hadgiven their Aadhar card details and digital signature to the company inconfidence.” 

“Some relatives werefound to have signed the papers voluntarily and knowingly, but had no knowledgeor control of the business activities of the companies in which they were madedirectors or shareholders.”

"The quantum ofincome escapement using this modus operandi, detected so far, amountsto ₹ 700 crore spread over a period of six years. However, thequantum may be more as the group has used multiple layers and investigationsare being carried out to unravel the entire money trail," the departmentadded.

The tax departmentsaid it had also found a violation of rules of the stock market regulatorSecurities and Exchange Board of India (SEBI) for listed companies."Application of Benami Transaction Prohibition Act will also beexamined," the department said further.

Adding to this, theycontinued, “Cyclical trading and transfer of funds among group companiesengaged in unrelated businesses to the tune of ₹ 2,200 crore has beenfound. The enquiries have confirmed that these have been fictitioustransactions without any actual movement or delivery of goods. The tax effectand violation of other laws is being examined."

"The listedmedia company does barter deals for advertisement revenues, whereby immovableproperties are received in lieu of actual payments. Evidences have been foundindicating cash receipts in respect of subsequent sale of such properties. Thisis under further examination," the department added.

However, Dainik Bhaskar have termed all these allegations of Rs 700 crore tax evasion as 'baseless'.

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